Bill Text Versions

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A bill for an actrelating to commerce; regulating certain conduct relating to the timing of money transmission; amending Minnesota Statutes 2018, section 53B.18.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 53B.18, is amended to read:

53B.18 PROHIBITED PRACTICES.

new text begin(a) new text endNo licensee shall:

(1) fail to comply with chapter 345 as it relates to unclaimed property requirements;

(2) refuse to indemnify an instrument holder for any misappropriation of money caused by any of its authorized delegates in conducting activities on behalf of the licensee for whom it acts as an authorized delegate;new text begin ornew text end

deleted text begin(3) fail to transmit all money received for wire transmission in accordance with the purchaser's instructions within five days; ordeleted text end

new text begin(b) A licensee must transmit all money received for transmission in accordance with the sender's instructions within five business days of the date the licensee receives the money from the sender unless:new text end

new text begin(1) otherwise ordered by the sender;new text end

new text begin(2) the licensee or its authorized delegate has reason to believe a crime has occurred, is occurring, or may occur as a result of transmission; ornew text end

new text begin(3) the transmission is payment for goods or services.new text end

new text begin(c) A licensee must conspicuously state in an agreement with a merchant to transmit money from a sender for goods or services:new text end

new text begin(1) that the licensee has the authority to place a hold on or delay the transmission of a sender's money for more than five business days; andnew text end

new text begin(2) the general circumstances under which a transmittal may be subject to a hold or delay.new text end

new text begin(d) A licensee that receives money from a sender for transmission to a merchant to pay for goods or services must transmit the money to the merchant within the time frame agreed upon in the merchant's agreement with the licensee.new text end

new text begin(e) If a licensee fails to transmit money received for transmission in accordance with this section, the licensee must respond to inquiries by the sender or recipient with the reason for the failure unless the response:new text end

new text begin(1) violates the licensee's security requirements;new text end

new text begin(2) results in the disclosure of a sender or recipient's private information to a third party; ornew text end

new text begin(3) requires disclosure of the licensee's confidential, proprietary, or trade secret information.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective August 1, 2020, and applies to transmissions and merchant agreements with licensees executed on or after that date.new text end